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We have already filed our returns for 2013, and received our refund.

TODAY, my husband's company sent us a check for money they say went into his 401K in 2013, in excess of the 2013 contribution limit.

This is because of an unbelievably stupid series of idiot mistakes on his company's part, but essentially it's technically true that the contribution was made in 2013.

So we have this money, and it has a nice, official letter that tells us that it's now 2013 taxable income.

Since we've ALREADY FILED for 2013, and they didn't bother taking out taxes, what do I do next?

Thanks,

GSF
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Since we've ALREADY FILED for 2013, and theya didn't bother taking out taxes, what do I do next?

Amend your return and pay the additional tax. As long as you pay the tax by 4/15 no interest will be due.

Phil
Rule Your Retirement Home Fool
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We have already filed our returns for 2013, and received our refund.
TODAY, my husband's company sent us a check for money they say went into his 401K in 2013, in excess of the 2013 contribution limit.
This is because of an unbelievably stupid series of idiot mistakes on his company's part, but essentially it's technically true that the contribution was made in 2013.
So we have this money, and it has a nice, official letter that tells us that it's now 2013 taxable income.
Since we've ALREADY FILED for 2013, and they didn't bother taking out taxes, what do I do next?

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Like Phil said, amend your return and pay the tax by April 15, and there will be no penalties or interest due.

I'd add, this kind of distribution is quite common this time of year, and it's not necessarily a stupid mistake on anyone's part, not the company's, nor your husband's.

I gather that your husband is a "highly compensated employee" (technical definition), and as such, the amount of income he can defer to his 401(k) plan is limited, in part, by the deferral percentage of the non-highly compensated group. And if they did not contribute as much as projected, then the result is that he contributed too much. This isn't known until the year is over, and now is the time to settle up. Inconvenient, yes, but often unavoidable. And a reason not to file your return too early.

Bill
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I'd add, this kind of distribution is quite common this time of year, and it's not necessarily a stupid mistake on anyone's part, not the company's, nor your husband's.

I gather that your husband is a "highly compensated employee" (technical definition), and as such, the amount of income he can defer to his 401(k) plan is limited, in part, by the deferral percentage of the non-highly compensated group. And if they did not contribute as much as projected, then the result is that he contributed too much. This isn't known until the year is over, and now is the time to settle up. Inconvenient, yes, but often unavoidable. And a reason not to file your return too early.


The stupid mistake was them deciding to generate the first paycheck of 2014 in 2013 (unannounced and un-planned for), and "accidentally" taking out 38% (that's thirty-eight percent!) of his that paycheck for 401K, for reasons still unbeknownst to us AND them, since they cannot figure out where such a figure would have come from, and it took us two pay cycles to get it back to the proper level (second paycheck they zeroed out the contribution, despite the fact that the website reflected the correct number).

That would be the "stupid mistake" part.

If that paycheck had been paid in 2014 as it should have been, I'd have been able to correct for that later in the year, but as it was... I'm sticking with it being their stupid mistake.

GSF
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The stupid mistake was them deciding to generate the first paycheck of 2014 in 2013 (unannounced and un-planned for), and "accidentally" taking out 38% (that's thirty-eight percent!) of his that paycheck for 401K, for reasons still unbeknownst to us AND them, since they cannot figure out where such a figure would have come from, and it took us two pay cycles to get it back to the proper level (second paycheck they zeroed out the contribution, despite the fact that the website reflected the correct number).
That would be the "stupid mistake" part.
If that paycheck had been paid in 2014 as it should have been, I'd have been able to correct for that later in the year, but as it was... I'm sticking with it being their stupid mistake.

GSF

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OK, I'll give you that one! Definitely not the transaction I had imagined.

Bill
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